Louisiana lawmakers are asking whether or not the massive insurance coverage fixes they handed earlier this 12 months are literally making a distinction. With premiums nonetheless sky-high and insurance coverage carriers gradual to return to the market, they’ve referred to as for a radical check-up on the state’s insurance coverage well being.
In a decision handed through the 2025 legislative session, officers requested the Division of Insurance coverage to run a two-year research, monitoring whether or not the reforms have made Louisiana extra aggressive and more cost effective for each insurers and policyholders. The concept is straightforward: extra competitors, fewer lawsuits, and a extra predictable authorized panorama may make it simpler for insurance coverage firms to do enterprise right here—and make it cheaper for residents to remain insured.
The decision, generally known as Senate Concurrent Decision No. 60, displays years of frustration with excessive prices and restricted protection, notably in owners’ and auto insurance coverage. Lawmakers pointed to what they see as a historical past of extreme litigation that’s pushed up declare bills and compelled insurers to lift charges or go away the state altogether. By curbing these authorized pressures, they hope to see decrease prices for carriers and, ultimately, for customers.
To seek out out whether or not that’s occurring, the research will monitor dozens of indicators from July 1, 2024, to November 1, 2026. The Division will have a look at what number of insurance coverage firms are attempting to enter the market, what number of succeed or are denied, and what number of are actively writing insurance policies. They’ll additionally tally up how usually firms ask to lift or decrease charges, and what number of complaints are available in from customers.
The decision additionally requires a deeper dive into nationwide rankings that measure how pleasant a state’s authorized and regulatory setting is for insurers. Officers are hoping to see Louisiana climb in these standings. The Division might be utilizing knowledge from large business sources like ISO Verisk and S&P International to comply with month-to-month adjustments in common premiums, claims dealing with, and whether or not insurers are pulling merchandise or increasing choices.
However this isn’t nearly numbers. The Division has additionally been requested to write down up a story that connects the dots—what’s working, what’s not, and which of the 2025 reforms have had essentially the most impression. If some knowledge isn’t out there, the company is allowed to fill within the gaps with different related info to make sure an entire image.
The ultimate report is due by the tip of 2026 and might be offered at a joint assembly of the state’s Senate and Home insurance coverage committees. Lawmakers need the Division to incorporate coverage ideas too, in case extra fine-tuning is required to maintain the market on a greater path.
For a state that’s been hit exhausting by storm injury, provider exits, and charge hikes, the hope is that this effort can lastly carry some long-term stability. Whether or not it does, nicely, that’s what they’re looking for out.
